When it Comes to Money, Xbox 360 Will Kick PS3’s Butt

Whether you are already lining up for the XBox 360 or holding fast for the PS3, investment firm Merrill Lynch says that when it comes to cold hard cash, Microsoft is looking good to win the next-gen gaming console war. They did a breakdown of parts being used in the machines, and claim that:

PS3 will not only be significantly more costly than Xbox 360 at launch, but will continue to operate at a cost disadvantage for several years.
Though the PS3 will surely be a more impressive console in terms of technology, it will cost Sony a bundle, ML thinks $500 at its launch in the spring of 2006. By then the Xbox might be down to $249.

The biggest cost for Sony is going to be the new Cell processor, which should cost the company $160 per chip (initially) compared to Microsoft’s $100 PowerPC chip. The one saving grace Sony may have? That they hope to able to use that chip for much more than just the PS3. Think TVs, laptops, DVRs. But Merrill Lynch doesn’t think that will be of much help because

Processor architectures have been in consolidation mode for the last 5 years, and we think it’s going to be difficult for Sony to find takers for Cell outside of the PS3.
One last monetary problem is the promised Blu-ray drive, which will add another $75 to the price. But hey, don’t forget the fans folks. It’s not over til Final Fantasy XXXVIIII comes out.